Silver enters a downtrend: USD/Silver breaks below the key psychological level of $50.00

Weakening Technical Signals Cannot Be Ignored Silver prices opened this week with a weak performance, with XAG/USD currently trading around $49.80, down approximately 0.30% from the previous day. The selling pressure over the past three trading days indicates that buying momentum is clearly lacking. Although the price has temporarily held above last Friday’s lows near the 48.65-48.60 USD range, the risk of further weakening is accumulating.

Four-Hour Chart Reveals Bearish Bias From a technical perspective, XAG/USD on the 4-hour timeframe shows vulnerability relative to the rising 200-period Exponential Moving Average (EMA). While it has not yet effectively broken below the 200-period EMA (currently around 49.20-49.15 USD), the weak momentum indicated by oscillators and the lack of strong buying interest suggest that the most likely direction for this white metal is downward. Traders should avoid overtrading and patiently wait for a confirmed break below the 200-period EMA on the 4-hour chart to re-establish a bearish trend.

Technical Breakdown of Downside Targets Once the aforementioned EMA support is convincingly broken, XAG/USD could accelerate downward, initially targeting last Friday’s low in the 48.65-48.60 USD range, with a further test of the 48.00 USD level possible. If this key level is also broken, a technical sell-off could be triggered, with the next support zone around 47.15-47.10 USD.

Conditions for a Rebound Scenario On the other hand, if silver prices rebound during the session above the psychological level of 50.00 USD, they will immediately face resistance near the high volatility zone in the Asian session, around 50.40 USD. Only a breakout above this level could trigger a short-term rebound and retake the 51.00 USD round number. If momentum persists, the strong resistance zone at 51.35-51.40 USD may become the next testing point. A successful breakout above this zone could shift the short-term outlook from bearish to bullish.

Traders should currently focus on observing the relative position of the price to the 200-period EMA, as this will be a key signal for determining subsequent directional moves.